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Author: Admin | 2025-04-28
Asset class. They might not offer pure exposure to these technologies, but by embracing this growing space, these crypto stocks look poised to deliver additional growth in 2021 and beyond.DisclaimerData is as of June 23. Earnings growth rate, profit margin and return on equity provided by Yahoo! Finance.(Image credit: Getty Images)PayPal HoldingsMarket value: $333.5 billionQuarterly earnings growth rate (year-over-year): 1,206%Profit margin: 22.8%Return on equity – trailing 12 months (TTM): 29.4%PayPal Holdings (PYPL, $288.12) announced in October a service that would allow users to hold Bitcoin, as well as the Ethereum, Bitcoin Cash and Litecoin cryptocurrencies.Before the end of the year, Mizuho Securities survey of 380 users showed that, within roughly one month, 17% had already used PayPal to buy or sell the cryptocurrency. Investment firm and hedge fund Pantera Capital wrote in a letter to shareholders that "PayPal and (Square's Cash App) are already buying more than 100% of all newly-issued bitcoins.""Crypto functionality is now part of Top 5 finance apps," say Piper Sandler analysts Christopher Donat and Crispin Love, who rate PYPL at Buy.If that 17% figure actually translates across all 392 million PayPal users worldwide, that indicates nearly 67 million people have started holding some amount of wealth in cryptocurrency.That's a massive figure that only makes Bitcoin more useful as a digital store of wealth thanks to the "network effect" – a concept PayPal understands well from when it was part of former parent company eBay (EBAY).Allowing users to buy and sell Bitcoin on its platform naturally opens up a new source of revenue for the company. Their business model of collecting a small "toll" for every financial transaction processed should help PYPL expand its bottom line when it begins to apply its fees to crypto transactions in 2021.In the first quarter of this year, PayPal saw revenue rise 29% year-over-year, and total payment volume jumped 50%. There were 14.5 million new accounts formed, and payment volume was $20 billion higher than expected. The push for incorporating cryptocurrencies was a big reason why."We've got a tremendous amount of really great results going on tactically with our crypto efforts," stated CEO Dan Schulman.As far as cryptocurrency stocks go, Wall Street analysts are upbeat on this one. They collectively believe PayPal will average 24.1% earnings growth annually over the next three to five years. That's reflected in a consensus Buy rating, according to S&P Global Market Intelligence.Sponsored Content(Image credit: Getty
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